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|
R
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
Or
|
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
Large accelerated filer
|
R
|
Accelerated filer
|
o
|
Non-accelerated filer
|
o
|
Smaller reporting company
|
o
|
|
(Do not check if a smaller reporting company)
|
|
|
Table of Contents
|
|
|
|
|
Page
|
|
|
|
|
|
|
|
|
|
|
(in millions, except share data)
|
September 30,
2013 |
|
December 31,
2012 |
||||
ASSETS
|
|||||||
Current Assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
3,018
|
|
|
$
|
2,416
|
|
Short-term investments
|
959
|
|
|
958
|
|
||
Restricted cash, cash equivalents and short-term investments
|
213
|
|
|
375
|
|
||
Accounts receivable, net of an allowance for uncollectible accounts of $23 and $36
at September 30, 2013 and December 31, 2012, respectively
|
1,969
|
|
|
1,693
|
|
||
Fuel inventory
|
679
|
|
|
619
|
|
||
Expendable parts and supplies inventories, net of an allowance for obsolescence of $126 and $127
at September 30, 2013 and December 31, 2012, respectively
|
353
|
|
|
404
|
|
||
Deferred income taxes, net
|
405
|
|
|
463
|
|
||
Prepaid expenses and other
|
1,355
|
|
|
1,344
|
|
||
Total current assets
|
8,951
|
|
|
8,272
|
|
||
Property and Equipment, Net:
|
|
|
|
||||
Property and equipment, net of accumulated depreciation and amortization of $7,478 and $6,656
at September 30, 2013 and December 31, 2012, respectively
|
21,297
|
|
|
20,713
|
|
||
Other Assets:
|
|
|
|
||||
Goodwill
|
9,794
|
|
|
9,794
|
|
||
Identifiable intangibles, net of accumulated amortization of $719 and $670
at September 30, 2013 and December 31, 2012, respectively
|
4,675
|
|
|
4,679
|
|
||
Other noncurrent assets
|
1,280
|
|
|
1,092
|
|
||
Total other assets
|
15,749
|
|
|
15,565
|
|
||
Total assets
|
$
|
45,997
|
|
|
$
|
44,550
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
|
|||||||
Current Liabilities:
|
|
|
|
||||
Current maturities of long-term debt and capital leases
|
$
|
1,823
|
|
|
$
|
1,627
|
|
Air traffic liability
|
4,583
|
|
|
3,696
|
|
||
Accounts payable
|
2,592
|
|
|
2,293
|
|
||
Accrued salaries and related benefits
|
1,769
|
|
|
1,680
|
|
||
Frequent flyer deferred revenue
|
1,554
|
|
|
1,806
|
|
||
Taxes payable
|
697
|
|
|
585
|
|
||
Fuel card obligation
|
545
|
|
|
455
|
|
||
Other accrued liabilities
|
571
|
|
|
1,128
|
|
||
Total current liabilities
|
14,134
|
|
|
13,270
|
|
||
Noncurrent Liabilities:
|
|
|
|
||||
Long-term debt and capital leases
|
10,077
|
|
|
11,082
|
|
||
Pension, postretirement and related benefits
|
15,379
|
|
|
16,005
|
|
||
Frequent flyer deferred revenue
|
2,568
|
|
|
2,628
|
|
||
Deferred income taxes, net
|
1,993
|
|
|
2,047
|
|
||
Other noncurrent liabilities
|
1,709
|
|
|
1,649
|
|
||
Total noncurrent liabilities
|
31,726
|
|
|
33,411
|
|
||
Commitments and Contingencies
|
|
|
|
||||
Stockholders' Equity (Deficit):
|
|
|
|
||||
Common stock at $0.0001 par value; 1,500,000,000 shares authorized, 873,523,221 and 867,866,505
shares issued at September 30, 2013 and December 31, 2012, respectively
|
—
|
|
|
—
|
|
||
Additional paid-in capital
|
14,096
|
|
|
14,069
|
|
||
Accumulated deficit
|
(5,379
|
)
|
|
(7,389
|
)
|
||
Accumulated other comprehensive loss
|
(8,324
|
)
|
|
(8,577
|
)
|
||
Treasury stock, at cost, 17,977,337 and 16,464,472 shares at September 30, 2013 and
December 31, 2012, respectively
|
(256
|
)
|
|
(234
|
)
|
||
Total stockholders' equity (deficit)
|
137
|
|
|
(2,131
|
)
|
||
Total liabilities and stockholders' equity (deficit)
|
$
|
45,997
|
|
|
$
|
44,550
|
|
|
|
|
|
||||
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(in millions, except per share data)
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Operating Revenue:
|
|
|
|
|
|
|
|
||||||||
Passenger:
|
|
|
|
|
|
|
|
||||||||
Mainline
|
$
|
7,566
|
|
|
$
|
6,994
|
|
|
$
|
20,222
|
|
|
$
|
19,276
|
|
Regional carriers
|
1,688
|
|
|
1,679
|
|
|
4,846
|
|
|
5,055
|
|
||||
Total passenger revenue
|
9,254
|
|
|
8,673
|
|
|
25,068
|
|
|
24,331
|
|
||||
Cargo
|
229
|
|
|
244
|
|
|
699
|
|
|
749
|
|
||||
Other
|
1,007
|
|
|
1,006
|
|
|
2,930
|
|
|
2,988
|
|
||||
Total operating revenue
|
10,490
|
|
|
9,923
|
|
|
28,697
|
|
|
28,068
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating Expense:
|
|
|
|
|
|
|
|
||||||||
Aircraft fuel and related taxes
|
2,291
|
|
|
2,221
|
|
|
7,175
|
|
|
7,759
|
|
||||
Salaries and related costs
|
1,976
|
|
|
1,850
|
|
|
5,809
|
|
|
5,438
|
|
||||
Regional carrier expense
|
1,459
|
|
|
1,447
|
|
|
4,302
|
|
|
4,238
|
|
||||
Aircraft maintenance materials and outside repairs
|
474
|
|
|
493
|
|
|
1,437
|
|
|
1,602
|
|
||||
Contracted services
|
429
|
|
|
402
|
|
|
1,239
|
|
|
1,177
|
|
||||
Depreciation and amortization
|
418
|
|
|
392
|
|
|
1,238
|
|
|
1,166
|
|
||||
Passenger commissions and other selling expenses
|
447
|
|
|
440
|
|
|
1,212
|
|
|
1,213
|
|
||||
Landing fees and other rents
|
378
|
|
|
360
|
|
|
1,060
|
|
|
1,012
|
|
||||
Passenger service
|
214
|
|
|
201
|
|
|
575
|
|
|
559
|
|
||||
Profit sharing
|
249
|
|
|
174
|
|
|
387
|
|
|
309
|
|
||||
Aircraft rent
|
47
|
|
|
65
|
|
|
162
|
|
|
208
|
|
||||
Restructuring and other items
|
106
|
|
|
149
|
|
|
242
|
|
|
330
|
|
||||
Other
|
439
|
|
|
421
|
|
|
1,160
|
|
|
1,233
|
|
||||
Total operating expense
|
8,927
|
|
|
8,615
|
|
|
25,998
|
|
|
26,244
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating Income
|
1,563
|
|
|
1,308
|
|
|
2,699
|
|
|
1,824
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Other (Expense) Income:
|
|
|
|
|
|
|
|
||||||||
Interest expense, net
|
(176
|
)
|
|
(195
|
)
|
|
(526
|
)
|
|
(623
|
)
|
||||
Amortization of debt discount, net
|
(37
|
)
|
|
(48
|
)
|
|
(120
|
)
|
|
(148
|
)
|
||||
Loss on extinguishment of debt
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
(12
|
)
|
||||
Miscellaneous, net
|
13
|
|
|
(1
|
)
|
|
(1
|
)
|
|
(27
|
)
|
||||
Total other expense, net
|
(200
|
)
|
|
(256
|
)
|
|
(647
|
)
|
|
(810
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Income Before Income Taxes
|
1,363
|
|
|
1,052
|
|
|
2,052
|
|
|
1,014
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income Tax Benefit (Provision)
|
6
|
|
|
(5
|
)
|
|
9
|
|
|
(11
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Net Income
|
$
|
1,369
|
|
|
$
|
1,047
|
|
|
$
|
2,061
|
|
|
$
|
1,003
|
|
|
|
|
|
|
|
|
|
||||||||
Basic Earnings Per Share
|
$
|
1.61
|
|
|
$
|
1.24
|
|
|
$
|
2.42
|
|
|
$
|
1.19
|
|
Diluted Earnings Per Share
|
$
|
1.59
|
|
|
$
|
1.23
|
|
|
$
|
2.40
|
|
|
$
|
1.18
|
|
|
|
|
|
|
|
|
|
||||||||
Comprehensive Income
|
$
|
1,376
|
|
|
$
|
1,073
|
|
|
$
|
2,314
|
|
|
$
|
1,305
|
|
|
|
|
|
|
|
|
|
||||||||
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
|
|
Nine Months Ended September 30,
|
||||||
(in millions)
|
2013
|
|
2012
|
||||
Net Cash Provided by Operating Activities
|
$
|
3,373
|
|
|
$
|
1,926
|
|
|
|
|
|
||||
Cash Flows From Investing Activities:
|
|
|
|
||||
Property and equipment additions:
|
|
|
|
||||
Flight equipment, including advance payments
|
(1,276
|
)
|
|
(885
|
)
|
||
Ground property and equipment, including technology
|
(340
|
)
|
|
(545
|
)
|
||
Purchase of Virgin Atlantic shares
|
(360
|
)
|
|
—
|
|
||
Purchase of short-term investments
|
(719
|
)
|
|
(719
|
)
|
||
Redemption of short-term investments
|
869
|
|
|
757
|
|
||
Other, net
|
18
|
|
|
(37
|
)
|
||
Net cash used in investing activities
|
(1,808
|
)
|
|
(1,429
|
)
|
||
|
|
|
|
||||
Cash Flows From Financing Activities:
|
|
|
|
||||
Payments on long-term debt and capital lease obligations
|
(968
|
)
|
|
(1,410
|
)
|
||
Cash dividends
|
(51
|
)
|
|
—
|
|
||
Proceeds from long-term obligations
|
68
|
|
|
480
|
|
||
Repurchase of common stock
|
(93
|
)
|
|
—
|
|
||
Fuel card obligation
|
90
|
|
|
73
|
|
||
Other, net
|
(9
|
)
|
|
(23
|
)
|
||
Net cash used in financing activities
|
(963
|
)
|
|
(880
|
)
|
||
|
|
|
|
||||
Net Increase (Decrease) in Cash and Cash Equivalents
|
602
|
|
|
(383
|
)
|
||
Cash and cash equivalents at beginning of period
|
2,416
|
|
|
2,657
|
|
||
Cash and cash equivalents at end of period
|
$
|
3,018
|
|
|
$
|
2,274
|
|
|
|
|
|
||||
Non-Cash Transactions:
|
|
|
|
||||
SkyMiles used pursuant to advance purchase under American Express Agreements
|
$
|
250
|
|
|
$
|
250
|
|
Build-to-suit leased facilities
|
103
|
|
|
141
|
|
||
|
|
|
|
||||
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
|
(in millions)
|
Airline
|
Refinery
|
|
Intersegment Sales/ Other
|
|
Consolidated
|
||||||||
Three Months Ended September 30, 2013
|
|
|
|
|
|
|
||||||||
Operating revenue:
|
$
|
10,490
|
|
$
|
1,892
|
|
|
|
|
$
|
10,490
|
|
||
Sales to airline segment
|
|
|
|
$
|
(320
|
)
|
(1)
|
|
||||||
Exchanged products
|
|
|
|
(1,504
|
)
|
(2)
|
|
|||||||
Sales of refined products to third parties
|
|
|
|
(68
|
)
|
(3)
|
|
|||||||
Operating income
(4)
|
1,560
|
|
3
|
|
|
|
|
1,563
|
|
|||||
Interest expense, net
|
176
|
|
—
|
|
|
|
|
176
|
|
|||||
Depreciation and amortization expense
|
413
|
|
5
|
|
|
|
|
418
|
|
|||||
Total assets, end of period
|
44,823
|
|
1,174
|
|
|
|
|
45,997
|
|
|||||
Capital expenditures
|
618
|
|
13
|
|
|
|
|
631
|
|
|||||
Nine Months Ended September 30, 2013
|
|
|
|
|
|
|
||||||||
Operating revenue:
|
$
|
28,697
|
|
$
|
5,487
|
|
|
|
|
$
|
28,697
|
|
||
Sales to airline segment
|
|
|
|
$
|
(927
|
)
|
(1)
|
|
||||||
Exchanged products
|
|
|
|
(4,172
|
)
|
(2)
|
|
|||||||
Sales of refined products to third parties
|
|
|
|
(388
|
)
|
(3)
|
|
|||||||
Operating income (loss)
(4)
|
2,769
|
|
(70
|
)
|
|
|
|
2,699
|
|
|||||
Interest expense, net
|
526
|
|
—
|
|
|
|
|
526
|
|
|||||
Depreciation and amortization expense
|
1,225
|
|
13
|
|
|
|
|
1,238
|
|
|||||
Capital expenditures
|
1,591
|
|
25
|
|
|
|
|
1,616
|
|
(1)
|
Represents transfers, valued on a market price basis, from the refinery to the airline segment for use in airline operations. We determine market price by reference to the market index for the primary delivery location for jet fuel from the refinery, which is New York Harbor.
|
(2)
|
Represents value of products exchanged under our buy/sell agreements, as discussed above, determined on a market price basis.
|
(3)
|
Represents sales of refined products to third parties. These sales were at or near cost; accordingly, the margin on these sales is de minimis.
|
(4)
|
Includes allocations of
$36 million
of gains in the three months ended
September 30, 2013
and
$8 million
of losses for the nine months ended
September 30, 2013
from the refinery segment to the airline segment, representing a portion of the refinery's inventory price risk.
|
(in millions)
|
September 30,
2013 |
Level 1
|
Level 2
|
Level 3
|
||||||||
Cash equivalents
|
$
|
2,702
|
|
$
|
2,702
|
|
$
|
—
|
|
$
|
—
|
|
Short-term investments
|
959
|
|
959
|
|
—
|
|
—
|
|
||||
Restricted cash equivalents and investments
|
209
|
|
209
|
|
—
|
|
—
|
|
||||
Long-term investments
|
112
|
|
84
|
|
28
|
|
—
|
|
||||
Hedge derivatives, net
|
|
|
|
|
||||||||
Fuel contracts
|
333
|
|
57
|
|
276
|
|
—
|
|
||||
Interest rate contracts
|
(66
|
)
|
—
|
|
(66
|
)
|
—
|
|
||||
Foreign currency exchange contracts
|
193
|
|
—
|
|
193
|
|
—
|
|
(in millions)
|
December 31,
2012 |
Level 1
|
Level 2
|
Level 3
|
||||||||
Cash equivalents
|
$
|
2,176
|
|
$
|
2,176
|
|
$
|
—
|
|
$
|
—
|
|
Short-term investments
|
958
|
|
958
|
|
—
|
|
—
|
|
||||
Restricted cash equivalents and investments
|
344
|
|
344
|
|
—
|
|
—
|
|
||||
Long-term investments
|
208
|
|
100
|
|
27
|
|
81
|
|
||||
Hedge derivatives, net
|
|
|
|
|
||||||||
Fuel contracts
|
249
|
|
27
|
|
222
|
|
—
|
|
||||
Interest rate contracts
|
(66
|
)
|
—
|
|
(66
|
)
|
—
|
|
||||
Foreign currency exchange contracts
|
123
|
|
—
|
|
123
|
|
—
|
|
•
|
Fuel Derivatives.
Our fuel hedge portfolio consists of call options; put options; combinations of two or more call options and put options; swap contracts; and futures contracts.
The products underlying the hedge contracts include crude oil, diesel fuel and jet fuel as these commodities are highly correlated with the price of jet fuel that we consume.
Option contracts are valued under an income approach using option pricing models based on data either readily observable in public markets, derived from public markets or provided by counterparties who regularly trade in public markets.
Volatilities used in these valuations ranged from 12% to 28% depending on the maturity dates, underlying commodities and strike prices of the option contracts.
Swap contracts are valued under an income approach using a discounted cash flow model based on data either readily observable or derived from public markets. Discount rates used in these valuations vary with the maturity dates of the respective contracts and are based on LIBOR. Futures contracts and options on futures contracts are traded on a public exchange and valued based on quoted market prices.
|
•
|
Interest Rate Derivatives.
Our interest rate derivatives consist primarily of swap contracts and are valued primarily based on data readily observable in public markets.
|
•
|
Foreign Currency Derivatives.
Our foreign currency derivatives consist of Japanese yen and Canadian dollar forward contracts and are valued based on data readily observable in public markets.
|
(in millions)
|
Notional Balance
|
Final Maturity Date
|
Prepaid Expenses and Other
|
Other Noncurrent Assets
|
Other Accrued Liabilities
|
Other Noncurrent Liabilities
|
Hedge Derivatives, Net
|
|||||||||||||
Designated as hedges
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts (cash flow hedges)
|
$
|
588
|
|
U.S. dollars
|
May 2019
|
$
|
—
|
|
$
|
—
|
|
$
|
(18
|
)
|
$
|
(30
|
)
|
$
|
(48
|
)
|
Interest rate contracts (fair value hedges)
|
$
|
445
|
|
U.S. dollars
|
August 2022
|
5
|
|
—
|
|
—
|
|
(23
|
)
|
(18
|
)
|
|||||
Foreign currency exchange contracts
|
128,713
|
|
Japanese yen
|
August 2016
|
118
|
|
76
|
|
—
|
|
(1
|
)
|
193
|
|
||||||
508
|
|
Canadian dollars
|
|
|
|
|
|
|||||||||||||
Not designated as hedges
|
|
|
|
|
|
|
|
|
||||||||||||
Fuel contracts
|
4,110
|
|
gallons - crude oil, diesel and jet fuel
|
December 2014
|
487
|
|
10
|
|
(160
|
)
|
(4
|
)
|
333
|
|
||||||
Total derivative contracts
|
|
|
$
|
610
|
|
$
|
86
|
|
$
|
(178
|
)
|
$
|
(58
|
)
|
$
|
460
|
|
(in millions)
|
Notional Balance
|
Final Maturity Date
|
Prepaid Expenses and Other
|
Other Noncurrent Assets
|
Other Accrued Liabilities
|
Other Noncurrent Liabilities
|
Hedge Derivatives, Net
|
|||||||||||||
Designated as hedges
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts (cash flow hedges)
|
$
|
740
|
|
U.S. dollars
|
May 2019
|
$
|
—
|
|
$
|
—
|
|
$
|
(22
|
)
|
$
|
(48
|
)
|
$
|
(70
|
)
|
Interest rate contracts (fair value hedges)
|
$
|
469
|
|
U.S. dollars
|
August 2022
|
—
|
|
6
|
|
(2
|
)
|
—
|
|
4
|
|
|||||
Foreign currency exchange contracts
|
119,277
|
|
Japanese yen
|
December 2015
|
62
|
|
63
|
|
(1
|
)
|
(1
|
)
|
123
|
|
||||||
430
|
|
Canadian dollars
|
|
|
|
|
|
|||||||||||||
Not designated as hedges
|
|
|
|
|
|
|
|
|
||||||||||||
Fuel contracts
|
1,792
|
|
gallons - heating oil, crude oil and jet fuel
|
December 2013
|
511
|
|
—
|
|
(262
|
)
|
—
|
|
249
|
|
||||||
Total derivative contracts
|
|
|
$
|
573
|
|
$
|
69
|
|
$
|
(287
|
)
|
$
|
(49
|
)
|
$
|
306
|
|
(in millions)
|
Prepaid Expenses and Other
|
Other Noncurrent Assets
|
Other Accrued Liabilities
|
Other Noncurrent Liabilities
|
Hedge Derivatives, Net
|
||||||||||
September 30, 2013
|
|
|
|
|
|
||||||||||
Net derivative contracts
|
$
|
457
|
|
$
|
84
|
|
$
|
(28
|
)
|
$
|
(53
|
)
|
$
|
460
|
|
December 31, 2012
|
|
|
|
|
|
||||||||||
Net derivative contracts
|
$
|
320
|
|
$
|
69
|
|
$
|
(34
|
)
|
$
|
(49
|
)
|
$
|
306
|
|
|
Effective Portion Reclassified from AOCI to Earnings
|
|
Effective Portion Recognized in Other Comprehensive Income
|
||||||||||
(in millions)
|
2013
|
2012
|
|
2013
|
2012
|
||||||||
Three Months Ended September 30,
|
|
|
|
|
|
||||||||
Foreign currency exchange contracts
|
$
|
55
|
|
$
|
(8
|
)
|
|
$
|
(70
|
)
|
$
|
(27
|
)
|
Nine Months Ended September 30,
|
|
|
|
|
|
||||||||
Foreign currency exchange contracts
|
$
|
100
|
|
$
|
(21
|
)
|
|
$
|
70
|
|
$
|
56
|
|
(in millions)
|
September 30,
2013 |
December 31,
2012 |
||||
Total debt at par value
|
$
|
11,820
|
|
$
|
12,633
|
|
Unamortized discount, net
|
(429
|
)
|
(527
|
)
|
||
Net carrying amount
|
$
|
11,391
|
|
$
|
12,106
|
|
Fair value
|
$
|
12,100
|
|
$
|
13,000
|
|
(in millions)
|
Total
|
||
Three months ending December 31, 2013
|
$
|
600
|
|
2014
|
1,695
|
|
|
2015
|
1,215
|
|
|
2016
|
1,700
|
|
|
2017
|
1,495
|
|
|
Thereafter
|
3,150
|
|
|
Total
|
$
|
9,855
|
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||
(in millions)
|
2013
|
2012
|
2013
|
2012
|
||||||||
Severance and related costs
|
$
|
—
|
|
$
|
66
|
|
$
|
—
|
|
$
|
237
|
|
Facilities, fleet and other
|
106
|
|
122
|
|
242
|
|
171
|
|
||||
Gain on slot exchange
|
—
|
|
(39
|
)
|
—
|
|
(78
|
)
|
||||
Total restructuring and other items
|
$
|
106
|
|
$
|
149
|
|
$
|
242
|
|
$
|
330
|
|
(in millions)
|
Severance and Related Costs
|
Lease Restructuring
|
||||
Balance as of December 31, 2012
|
$
|
49
|
|
$
|
77
|
|
Additional costs and expenses
|
—
|
|
7
|
|
||
Payments
|
(46
|
)
|
(11
|
)
|
||
Other
|
(3
|
)
|
(5
|
)
|
||
Balance as of September 30, 2013
|
$
|
—
|
|
$
|
68
|
|
|
Pension Benefits
|
Other Postretirement and
Postemployment Benefits
|
||||||||||
(in millions)
|
2013
|
2012
|
2013
|
2012
|
||||||||
Three Months Ended September 30,
|
|
|
|
|
||||||||
Service cost
|
$
|
—
|
|
$
|
—
|
|
$
|
12
|
|
$
|
14
|
|
Interest cost
|
215
|
|
232
|
|
36
|
|
41
|
|
||||
Expected return on plan assets
|
(184
|
)
|
(176
|
)
|
(21
|
)
|
(19
|
)
|
||||
Amortization of prior service benefit
|
—
|
|
—
|
|
(7
|
)
|
(7
|
)
|
||||
Recognized net actuarial loss
|
56
|
|
36
|
|
6
|
|
6
|
|
||||
Settlements
|
—
|
|
—
|
|
—
|
|
6
|
|
||||
Net periodic cost
|
$
|
87
|
|
$
|
92
|
|
$
|
26
|
|
$
|
41
|
|
Nine Months Ended September 30,
|
|
|
|
|
||||||||
Service cost
|
$
|
—
|
|
$
|
—
|
|
$
|
36
|
|
$
|
43
|
|
Interest cost
|
645
|
|
696
|
|
108
|
|
123
|
|
||||
Expected return on plan assets
|
(552
|
)
|
(528
|
)
|
(63
|
)
|
(57
|
)
|
||||
Amortization of prior service benefit
|
—
|
|
—
|
|
(21
|
)
|
(16
|
)
|
||||
Recognized net actuarial loss
|
167
|
|
108
|
|
18
|
|
18
|
|
||||
Settlements
|
6
|
|
—
|
|
—
|
|
110
|
|
||||
Net periodic cost
|
$
|
266
|
|
$
|
276
|
|
$
|
78
|
|
$
|
221
|
|
(in millions)
|
Pension and Other Benefits Liabilities
|
Derivative Contracts
(1)
|
Deferred Tax Impact
|
Total
|
||||||||
Balance at December 31, 2012
|
$
|
(5,147
|
)
|
$
|
(286
|
)
|
$
|
(3,144
|
)
|
$
|
(8,577
|
)
|
Changes in value
|
(9
|
)
|
194
|
|
—
|
|
185
|
|
||||
Reclassifications into earnings:
|
|
|
|
|
||||||||
Actuarial losses
(2)
|
168
|
|
—
|
|
—
|
|
168
|
|
||||
Foreign currency exchange contracts
(3)
|
—
|
|
(100
|
)
|
—
|
|
(100
|
)
|
||||
Total reclassification into earnings
|
168
|
|
(100
|
)
|
—
|
|
68
|
|
||||
Tax effect
|
(61
|
)
|
(35
|
)
|
96
|
|
—
|
|
||||
Balance at September 30, 2013
|
$
|
(5,049
|
)
|
$
|
(227
|
)
|
$
|
(3,048
|
)
|
$
|
(8,324
|
)
|
(in millions)
|
Pension and Other Benefits Liabilities
|
Derivative Contracts
(1)
|
Deferred Tax Impact
|
Total
|
||||||||
Balance at December 31, 2011
|
$
|
(3,899
|
)
|
$
|
(413
|
)
|
$
|
(2,454
|
)
|
$
|
(6,766
|
)
|
Changes in value
|
140
|
|
38
|
|
—
|
|
178
|
|
||||
Reclassifications into earnings:
|
|
|
|
|
||||||||
Actuarial losses
(2)
|
113
|
|
—
|
|
—
|
|
113
|
|
||||
Foreign currency exchange contracts
(3)
|
—
|
|
11
|
|
—
|
|
11
|
|
||||
Total reclassification into earnings
|
113
|
|
11
|
|
—
|
|
124
|
|
||||
Tax effect
|
(93
|
)
|
(22
|
)
|
115
|
|
—
|
|
||||
Balance at September 30, 2012
|
$
|
(3,739
|
)
|
$
|
(386
|
)
|
$
|
(2,339
|
)
|
$
|
(6,464
|
)
|
(1)
|
Includes
$321 million
of deferred income tax expense that will remain in AOCI until all amounts in AOCI that relate to fuel derivatives which are designated as accounting hedges are recognized in the Consolidated Statement of Operations.
|
(2)
|
Reclassified to salaries and related costs
|
(3)
|
Reclassified to passenger revenue
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||
(in millions, except per share data)
|
2013
|
2012
|
2013
|
2012
|
||||||||
Net income
|
$
|
1,369
|
|
$
|
1,047
|
|
$
|
2,061
|
|
$
|
1,003
|
|
|
|
|
|
|
||||||||
Basic weighted average shares outstanding
|
851
|
|
846
|
|
850
|
|
845
|
|
||||
Dilutive effect of share based awards
|
10
|
|
4
|
|
8
|
|
4
|
|
||||
Diluted weighted average shares outstanding
|
861
|
|
850
|
|
858
|
|
849
|
|
||||
|
|
|
|
|
||||||||
Basic earnings per share
|
$
|
1.61
|
|
$
|
1.24
|
|
$
|
2.42
|
|
$
|
1.19
|
|
Diluted earnings per share
|
$
|
1.59
|
|
$
|
1.23
|
|
$
|
2.40
|
|
$
|
1.18
|
|
|
|
|
|
|
||||||||
Antidilutive common stock equivalents excluded from diluted earnings per share
|
9
|
|
19
|
|
11
|
|
19
|
|
|
Three Months Ended September 30,
|
|
|
||||||||
(in millions)
|
2013
|
2012
|
Increase (Decrease)
|
% Increase
(Decrease)
|
|||||||
Passenger:
|
|
|
|
|
|||||||
Mainline
|
$
|
7,566
|
|
$
|
6,994
|
|
$
|
572
|
|
8
|
%
|
Regional carriers
|
1,688
|
|
1,679
|
|
9
|
|
1
|
%
|
|||
Total passenger revenue
|
9,254
|
|
8,673
|
|
581
|
|
7
|
%
|
|||
Cargo
|
229
|
|
244
|
|
(15
|
)
|
(6
|
)%
|
|||
Other
|
1,007
|
|
1,006
|
|
1
|
|
—
|
%
|
|||
Total operating revenue
|
$
|
10,490
|
|
$
|
9,923
|
|
$
|
567
|
|
6
|
%
|
|
|
Increase (Decrease)
vs. Three Months Ended September 30, 2012
|
|||||||||||||
(in millions)
|
Three Months Ended September 30, 2013
|
Passenger
Revenue
|
RPMs
(1)
(Traffic)
|
ASMs
(2)
(Capacity)
|
Passenger Mile
Yield
|
PRASM
(3)
|
Load
Factor
|
||||||||
Domestic
|
$
|
4,121
|
|
11
|
%
|
2
|
%
|
3
|
%
|
9
|
%
|
8
|
%
|
(0.9
|
) pts
|
Atlantic
|
1,853
|
|
9
|
%
|
5
|
%
|
3
|
%
|
4
|
%
|
6
|
%
|
1.1
|
pts
|
|
Pacific
|
1,044
|
|
(5
|
)%
|
(1
|
)%
|
(1
|
)%
|
(4
|
)%
|
(4
|
)%
|
(0.3
|
) pts
|
|
Latin America
|
548
|
|
16
|
%
|
14
|
%
|
14
|
%
|
2
|
%
|
2
|
%
|
(0.4
|
) pts
|
|
Total Mainline
|
7,566
|
|
8
|
%
|
3
|
%
|
3
|
%
|
5
|
%
|
5
|
%
|
(0.3
|
) pts
|
|
Regional carriers
|
1,688
|
|
1
|
%
|
(4
|
)%
|
(2
|
)%
|
5
|
%
|
2
|
%
|
(2.1
|
) pts
|
|
Total passenger revenue
|
$
|
9,254
|
|
7
|
%
|
2
|
%
|
3
|
%
|
5
|
%
|
4
|
%
|
(0.4
|
) pts
|
(1)
|
Revenue passenger miles (“RPMs”)
|
(2)
|
Available seat miles (“ASMs”)
|
(3)
|
Passenger revenue per ASM (“PRASM”)
|
|
Three Months Ended September 30,
|
Increase
(Decrease)
|
% Increase
(Decrease)
|
||||||||
(in millions)
|
2013
|
2012
|
|||||||||
Aircraft fuel and related taxes
|
$
|
2,291
|
|
$
|
2,221
|
|
$
|
70
|
|
3
|
%
|
Salaries and related costs
|
1,976
|
|
1,850
|
|
126
|
|
7
|
%
|
|||
Regional carrier expense
|
1,459
|
|
1,447
|
|
12
|
|
1
|
%
|
|||
Aircraft maintenance materials and outside repairs
|
474
|
|
493
|
|
(19
|
)
|
(4
|
)%
|
|||
Contracted services
|
429
|
|
402
|
|
27
|
|
7
|
%
|
|||
Depreciation and amortization
|
418
|
|
392
|
|
26
|
|
7
|
%
|
|||
Passenger commissions and other selling expenses
|
447
|
|
440
|
|
7
|
|
2
|
%
|
|||
Landing fees and other rents
|
378
|
|
360
|
|
18
|
|
5
|
%
|
|||
Passenger service
|
214
|
|
201
|
|
13
|
|
6
|
%
|
|||
Profit sharing
|
249
|
|
174
|
|
75
|
|
43
|
%
|
|||
Aircraft rent
|
47
|
|
65
|
|
(18
|
)
|
(28
|
)%
|
|||
Restructuring and other items
|
106
|
|
149
|
|
(43
|
)
|
NM
(1)
|
|
|||
Other
|
439
|
|
421
|
|
18
|
|
4
|
%
|
|||
Total operating expense
|
$
|
8,927
|
|
$
|
8,615
|
|
$
|
312
|
|
4
|
%
|
(1)
|
NM - Not meaningful
|
|
Three Months Ended September 30,
|
Increase
(Decrease) |
% Increase
(Decrease) |
||||||||
(in millions, except per gallon data)
|
2013
|
2012
|
|||||||||
Aircraft fuel and related taxes
(1)
|
$
|
2,291
|
|
$
|
2,221
|
|
$
|
70
|
|
|
|
Aircraft fuel and related taxes included within regional carrier expense
|
544
|
|
540
|
|
4
|
|
|
||||
Total fuel expense
|
$
|
2,835
|
|
$
|
2,761
|
|
$
|
74
|
|
3
|
%
|
|
|
|
|
|
|||||||
Total fuel consumption (gallons)
|
1,050
|
|
1,021
|
|
29
|
|
3
|
%
|
|||
Average price per gallon
|
$
|
2.70
|
|
$
|
2.71
|
|
$
|
(0.01
|
)
|
—
|
%
|
(1)
|
Includes the impact of fuel hedging and refinery results described further in the table below.
|
|
|
Average Price Per Gallon
|
||||||||||||||||
|
Three Months Ended September 30,
|
Change
|
Three Months Ended September 30,
|
Change
|
||||||||||||||
(in millions, except per gallon data)
(1)
|
2013
|
2012
|
2013
|
2012
|
||||||||||||||
Fuel purchase cost
|
$
|
3,190
|
|
$
|
3,175
|
|
$
|
15
|
|
$
|
3.03
|
|
$
|
3.11
|
|
$
|
(0.08
|
)
|
Airline segment fuel hedge gains
|
(352
|
)
|
(414
|
)
|
62
|
|
(0.33
|
)
|
(0.40
|
)
|
0.07
|
|
||||||
Refinery segment impact
|
(3
|
)
|
—
|
|
(3
|
)
|
—
|
|
—
|
|
—
|
|
||||||
Total fuel expense
|
$
|
2,835
|
|
$
|
2,761
|
|
$
|
74
|
|
$
|
2.70
|
|
$
|
2.71
|
|
$
|
(0.01
|
)
|
MTM adjustments
|
285
|
|
440
|
|
(155
|
)
|
0.27
|
|
0.43
|
|
(0.16
|
)
|
||||||
Total fuel expense, adjusted
|
$
|
3,120
|
|
$
|
3,201
|
|
$
|
(81
|
)
|
$
|
2.97
|
|
$
|
3.14
|
|
$
|
(0.17
|
)
|
(1)
|
Includes gain allocation of
$36 million
for the
three months ended
September 30, 2013
from the refinery segment to the airline segment, representing a portion of the refinery's inventory price risk.
|
|
Nine Months Ended September 30,
|
|
|
||||||||
(in millions)
|
2013
|
2012
|
Increase (Decrease)
|
% Increase
(Decrease)
|
|||||||
Passenger:
|
|
|
|
|
|||||||
Mainline
|
$
|
20,222
|
|
$
|
19,276
|
|
$
|
946
|
|
5
|
%
|
Regional carriers
|
4,846
|
|
5,055
|
|
(209
|
)
|
(4
|
)%
|
|||
Total passenger revenue
|
25,068
|
|
24,331
|
|
737
|
|
3
|
%
|
|||
Cargo
|
699
|
|
749
|
|
(50
|
)
|
(7
|
)%
|
|||
Other
|
2,930
|
|
2,988
|
|
(58
|
)
|
(2
|
)%
|
|||
Total operating revenue
|
$
|
28,697
|
|
$
|
28,068
|
|
$
|
629
|
|
2
|
%
|
|
|
Increase (Decrease)
vs. Nine Months Ended September 30, 2012
|
|||||||||||||
(in millions)
|
Nine Months Ended September 30, 2013
|
Passenger
Revenue
|
RPMs
(1)
(Traffic)
|
ASMs
(2)
(Capacity)
|
Passenger Mile
Yield
|
PRASM
(3)
|
Load
Factor
|
||||||||
Domestic
|
$
|
11,420
|
|
7
|
%
|
1
|
%
|
2
|
%
|
5
|
%
|
5
|
%
|
(0.7
|
) pts
|
Atlantic
|
4,449
|
|
3
|
%
|
1
|
%
|
(1
|
)%
|
2
|
%
|
4
|
%
|
1.7
|
pts
|
|
Pacific
|
2,758
|
|
(2
|
)%
|
1
|
%
|
(1
|
)%
|
(2
|
)%
|
—
|
%
|
1.8
|
pts
|
|
Latin America
|
1,595
|
|
9
|
%
|
9
|
%
|
6
|
%
|
(1
|
)%
|
2
|
%
|
2.5
|
pts
|
|
Total Mainline
|
20,222
|
|
5
|
%
|
2
|
%
|
1
|
%
|
3
|
%
|
4
|
%
|
0.5
|
pts
|
|
Regional carriers
|
4,846
|
|
(4
|
)%
|
(7
|
)%
|
(5
|
)%
|
3
|
%
|
1
|
%
|
(1.9
|
) pts
|
|
Total passenger revenue
|
$
|
25,068
|
|
3
|
%
|
1
|
%
|
—
|
%
|
2
|
%
|
3
|
%
|
0.3
|
pts
|
(1)
|
Revenue passenger miles (“RPMs”)
|
(2)
|
Available seat miles (“ASMs”)
|
(3)
|
Passenger revenue per ASM (“PRASM”)
|
|
Nine Months Ended September 30,
|
Increase
(Decrease)
|
% Increase
(Decrease)
|
||||||||
(in millions)
|
2013
|
2012
|
|||||||||
Aircraft fuel and related taxes
|
$
|
7,175
|
|
$
|
7,759
|
|
$
|
(584
|
)
|
(8
|
)%
|
Salaries and related costs
|
5,809
|
|
5,438
|
|
371
|
|
7
|
%
|
|||
Regional carrier expense
|
4,302
|
|
4,238
|
|
64
|
|
2
|
%
|
|||
Aircraft maintenance materials and outside repairs
|
1,437
|
|
1,602
|
|
(165
|
)
|
(10
|
)%
|
|||
Contracted services
|
1,239
|
|
1,177
|
|
62
|
|
5
|
%
|
|||
Depreciation and amortization
|
1,238
|
|
1,166
|
|
72
|
|
6
|
%
|
|||
Passenger commissions and other selling expenses
|
1,212
|
|
1,213
|
|
(1
|
)
|
—
|
%
|
|||
Landing fees and other rents
|
1,060
|
|
1,012
|
|
48
|
|
5
|
%
|
|||
Passenger service
|
575
|
|
559
|
|
16
|
|
3
|
%
|
|||
Profit sharing
|
387
|
|
309
|
|
78
|
|
25
|
%
|
|||
Aircraft rent
|
162
|
|
208
|
|
(46
|
)
|
(22
|
)%
|
|||
Restructuring and other items
|
242
|
|
330
|
|
(88
|
)
|
NM
|
|
|||
Other
|
1,160
|
|
1,233
|
|
(73
|
)
|
(6
|
)%
|
|||
Total operating expense
|
$
|
25,998
|
|
$
|
26,244
|
|
$
|
(246
|
)
|
(1
|
)%
|
|
Nine Months Ended September 30,
|
Increase
(Decrease)
|
% Increase
(Decrease)
|
||||||||
(in millions, except per gallon data)
|
2013
|
2012
|
|||||||||
Aircraft fuel and related taxes
(1)
|
$
|
7,175
|
|
$
|
7,759
|
|
$
|
(584
|
)
|
|
|
Aircraft fuel and related taxes included within regional carrier expense
|
1,570
|
|
1,587
|
|
(17
|
)
|
|
||||
Total fuel expense
|
$
|
8,745
|
|
$
|
9,346
|
|
$
|
(601
|
)
|
(6
|
)%
|
|
|
|
|
|
|||||||
Total fuel consumption (gallons)
|
2,906
|
|
2,875
|
|
31
|
|
1
|
%
|
|||
Average price per gallon
|
$
|
3.01
|
|
$
|
3.25
|
|
$
|
(0.24
|
)
|
(7
|
)%
|
(1)
|
Includes the impact of fuel hedging and refinery results described further in the table below.
|
|
|
Average Price Per Gallon
|
||||||||||||||||
|
Nine Months Ended September 30,
|
Change
|
Nine Months Ended September 30,
|
Change
|
||||||||||||||
(in millions, except per gallon data)
(1)
|
2013
|
2012
|
2013
|
2012
|
||||||||||||||
Fuel purchase cost
|
$
|
8,969
|
|
$
|
9,240
|
|
$
|
(271
|
)
|
$
|
3.09
|
|
$
|
3.21
|
|
$
|
(0.12
|
)
|
Airline segment fuel hedge (gains) losses
|
(294
|
)
|
106
|
|
(400
|
)
|
(0.10
|
)
|
0.04
|
|
(0.14
|
)
|
||||||
Refinery segment impact
|
70
|
|
—
|
|
70
|
|
0.02
|
|
—
|
|
0.02
|
|
||||||
Total fuel expense
|
$
|
8,745
|
|
$
|
9,346
|
|
$
|
(601
|
)
|
$
|
3.01
|
|
$
|
3.25
|
|
$
|
(0.24
|
)
|
MTM adjustments
|
184
|
|
30
|
|
154
|
|
0.06
|
|
0.01
|
|
0.05
|
|
||||||
Total fuel expense, adjusted
|
$
|
8,929
|
|
$
|
9,376
|
|
$
|
(447
|
)
|
$
|
3.07
|
|
$
|
3.26
|
|
$
|
(0.19
|
)
|
(1)
|
Includes loss allocation of
$8 million
for the
nine months ended
September 30, 2013
from the refinery segment to the airline segment, representing a portion of the refinery's inventory price risk.
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||
(in millions)
|
2013
|
2012
|
2013
|
2012
|
||||||||
International and state income tax provision
|
$
|
—
|
|
$
|
(5
|
)
|
$
|
(9
|
)
|
$
|
(11
|
)
|
Alternative minimum tax refunds
|
6
|
|
—
|
|
18
|
|
—
|
|
||||
Income tax benefit (provision)
|
$
|
6
|
|
$
|
(5
|
)
|
$
|
9
|
|
$
|
(11
|
)
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||
Consolidated
(1)
|
2013
|
2012
|
2013
|
2012
|
||||||||
Revenue passenger miles (millions)
|
54,939
|
|
53,828
|
|
148,798
|
|
147,699
|
|
||||
Available seat miles (millions)
|
63,893
|
|
62,283
|
|
176,795
|
|
176,073
|
|
||||
Passenger mile yield
|
|
16.85
|
¢
|
|
16.11
|
¢
|
|
16.85
|
¢
|
|
16.47
|
¢
|
Passenger revenue per available seat mile
|
|
14.48
|
¢
|
|
13.93
|
¢
|
|
14.18
|
¢
|
|
13.82
|
¢
|
Operating cost per available seat mile (CASM)
|
|
13.97
|
¢
|
|
13.83
|
¢
|
|
14.71
|
¢
|
|
14.91
|
¢
|
CASM-Ex
(2)
|
|
8.64
|
¢
|
|
8.55
|
¢
|
|
9.09
|
¢
|
|
8.85
|
¢
|
Passenger load factor
|
86.0
|
%
|
86.4
|
%
|
84.2
|
%
|
83.9
|
%
|
||||
Fuel gallons consumed (millions)
|
1,050
|
|
1,021
|
|
2,906
|
|
2,875
|
|
||||
Average price per gallon
(3)
|
$
|
2.70
|
|
$
|
2.71
|
|
$
|
3.01
|
|
$
|
3.25
|
|
Average price per gallon, adjusted
(4)
|
$
|
2.97
|
|
$
|
3.14
|
|
$
|
3.07
|
|
$
|
3.26
|
|
Full-time equivalent employees, end of period
|
77,867
|
|
76,626
|
|
|
|
(1)
|
Includes the operations of our regional carriers under capacity purchase agreements. Full-time equivalent employees exclude employees of regional carriers that we do not own.
|
(2)
|
Non-GAAP financial measure defined in "September 2013 Quarter Financial Highlights" above. See reconciliation to CASM in "Supplemental Information" below.
|
(3)
|
Includes the impact of fuel hedge activity.
|
(4)
|
Non-GAAP financial measure defined and reconciled in "Operating Expense" sections of Results of Operations for the three and nine months ended September 30, 2013 and 2012.
|
|
Current Fleet
(1)
|
|
Commitments
|
|
|||||||||||||
Aircraft Type
|
Owned
|
Capital
Lease
|
Operating
Lease
|
Total
|
Average
Age
|
|
Purchase
(2)(3)
|
Lease
|
Options
|
||||||||
B-717-200
|
—
|
|
1
|
|
—
|
|
1
|
|
13.6
|
|
|
—
|
|
87
|
|
—
|
|
B-737-700
|
10
|
|
—
|
|
—
|
|
10
|
|
4.7
|
|
|
—
|
|
—
|
|
—
|
|
B-737-800
|
73
|
|
—
|
|
—
|
|
73
|
|
12.7
|
|
|
—
|
|
—
|
|
—
|
|
B-737-900ER
|
1
|
|
—
|
|
—
|
|
1
|
|
—
|
|
|
99
|
|
—
|
|
30
|
|
B-747-400
|
4
|
|
9
|
|
3
|
|
16
|
|
19.9
|
|
|
—
|
|
—
|
|
—
|
|
B-757-200
|
97
|
|
22
|
|
19
|
|
138
|
|
19.4
|
|
|
—
|
|
—
|
|
—
|
|
B-757-300
|
16
|
|
—
|
|
—
|
|
16
|
|
10.6
|
|
|
—
|
|
—
|
|
—
|
|
B-767-300
|
10
|
|
2
|
|
4
|
|
16
|
|
22.7
|
|
|
—
|
|
—
|
|
—
|
|
B-767-300ER
|
51
|
|
5
|
|
2
|
|
58
|
|
17.5
|
|
|
—
|
|
—
|
|
2
|
|
B-767-400ER
|
21
|
|
—
|
|
—
|
|
21
|
|
12.6
|
|
|
—
|
|
—
|
|
4
|
|
B-777-200ER
|
8
|
|
—
|
|
—
|
|
8
|
|
13.7
|
|
|
—
|
|
—
|
|
—
|
|
B-777-200LR
|
10
|
|
—
|
|
—
|
|
10
|
|
4.5
|
|
|
—
|
|
—
|
|
6
|
|
B-787-8
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
18
|
|
—
|
|
—
|
|
A319-100
|
55
|
|
—
|
|
2
|
|
57
|
|
11.7
|
|
|
—
|
|
—
|
|
—
|
|
A320-200
|
50
|
|
—
|
|
19
|
|
69
|
|
18.6
|
|
|
—
|
|
—
|
|
—
|
|
A321-200
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
30
|
|
—
|
|
—
|
|
A330-200
|
11
|
|
—
|
|
—
|
|
11
|
|
8.5
|
|
|
—
|
|
—
|
|
—
|
|
A330-300
|
21
|
|
—
|
|
—
|
|
21
|
|
8.1
|
|
|
10
|
|
—
|
|
—
|
|
MD-88
|
71
|
|
46
|
|
—
|
|
117
|
|
23.2
|
|
|
—
|
|
—
|
|
—
|
|
MD-90
|
57
|
|
8
|
|
—
|
|
65
|
|
16.5
|
|
|
—
|
|
—
|
|
—
|
|
DC9-50
|
16
|
|
—
|
|
—
|
|
16
|
|
35.1
|
|
|
—
|
|
—
|
|
—
|
|
Total
|
582
|
|
93
|
|
49
|
|
724
|
|
17.3
|
|
|
157
|
|
87
|
|
42
|
|
(1)
|
Excludes certain aircraft we own or lease which are operated by regional carriers on our behalf shown in the table below.
|
(2)
|
Our purchase commitment for 18 B-787-8 aircraft provides for certain aircraft substitution rights.
|
(3)
|
In addition, we have purchase commitments for
37
CRJ-900 aircraft and options for 30 CRJ-900 aircraft and 27 Embraer 175 aircraft that will be operated by our regional carriers.
|
|
Fleet Type
|
|
||||||||||||
Carrier
|
CRJ-200
|
CRJ-700
|
CRJ-900
|
ERJ-145
|
Embraer 170
|
Embraer 175
|
Total
|
|||||||
Endeavor Airlines, Inc.
|
132
|
|
—
|
|
44
|
|
—
|
|
—
|
|
—
|
|
176
|
|
ExpressJet Airlines, Inc.
|
77
|
|
41
|
|
28
|
|
—
|
|
—
|
|
—
|
|
146
|
|
SkyWest Airlines, Inc.
|
48
|
|
19
|
|
32
|
|
—
|
|
—
|
|
—
|
|
99
|
|
Compass Airlines, Inc.
|
—
|
|
—
|
|
—
|
|
—
|
|
6
|
|
36
|
|
42
|
|
Chautauqua Airlines, Inc.
|
—
|
|
—
|
|
—
|
|
41
|
|
—
|
|
—
|
|
41
|
|
Shuttle America Corporation
|
—
|
|
—
|
|
—
|
|
—
|
|
14
|
|
16
|
|
30
|
|
GoJet Airlines, LLC
|
—
|
|
22
|
|
—
|
|
—
|
|
—
|
|
—
|
|
22
|
|
Total
|
257
|
|
82
|
|
104
|
|
41
|
|
20
|
|
52
|
|
556
|
|
•
|
Aircraft fuel and related taxes.
The volatility in fuel prices impacts the comparability of year-over-year financial performance. The exclusion of aircraft fuel and related taxes from this measure (including our regional carriers under capacity purchase arrangements) allows investors to better understand and analyze our non-fuel costs and our year-over-year financial performance.
|
•
|
Profit sharing.
We exclude profit sharing because this exclusion allows investors to better understand and analyze our recurring cost performance and provides a more meaningful comparison of our core operating costs to the airline industry.
|
•
|
Ancillary businesses
. Our ancillary businesses include aircraft maintenance and staffing services we provide to third parties and our vacation wholesale operations. Because these businesses are not related to the generation of a seat mile, we exclude the costs related to these businesses from this measure to provide a more meaningful comparison of costs of our airline operations to the rest of the airline industry.
|
•
|
Restructuring and other items.
Because of the variability in restructuring and other items, the exclusion of this item from this measure is helpful to investors to analyze our core operational cost performance in the periods shown.
|
•
|
MTM adjustments.
MTM adjustments are based on market prices as of the end of the reporting period for contracts settling in future periods
.
Such market prices are not necessarily indicative of the actual future value of the underlying hedge in the contract settlement period. Therefore, excluding these adjustments allows investors to better understand and analyze our costs for the periods reported.
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||
CASM
|
|
13.97
|
¢
|
|
13.83
|
¢
|
|
14.71
|
¢
|
|
14.91
|
¢
|
Items excluded:
|
|
|
|
|
||||||||
Aircraft fuel and related taxes
|
(4.88
|
)
|
(5.13
|
)
|
(5.04
|
)
|
(5.32
|
)
|
||||
Profit sharing
|
(0.39
|
)
|
(0.28
|
)
|
(0.22
|
)
|
(0.18
|
)
|
||||
Ancillary businesses
|
(0.34
|
)
|
(0.34
|
)
|
(0.32
|
)
|
(0.39
|
)
|
||||
Restructuring and other items
|
(0.17
|
)
|
(0.24
|
)
|
(0.14
|
)
|
(0.19
|
)
|
||||
MTM adjustments
|
0.45
|
|
0.71
|
|
0.10
|
|
0.02
|
|
||||
CASM-Ex
|
|
8.64
|
¢
|
|
8.55
|
¢
|
|
9.09
|
¢
|
|
8.85
|
¢
|
|
Three Months Ending December 31, 2013
|
|
Year Ending December 31, 2014
|
|
Fuel Hedge Margin Received from (Posted to) Counterparties
|
||||||||||||||||||
(in millions)
|
(Increase) Decrease to Unhedged Fuel Cost
(1)
|
Hedge Gain (Loss)
(2)
|
Net Impact
|
|
(Increase) Decrease to Unhedged Fuel Cost
(1)
|
Hedge Gain (Loss)
(2)
|
Net Impact
|
|
|||||||||||||||
+ 20%
|
$
|
(530
|
)
|
$
|
40
|
|
$
|
(490
|
)
|
|
$
|
(2,200
|
)
|
$
|
540
|
|
$
|
(1,660
|
)
|
|
$
|
300
|
|
+ 10%
|
(260
|
)
|
70
|
|
(190
|
)
|
|
(1,100
|
)
|
290
|
|
(810
|
)
|
|
190
|
|
|||||||
- 10%
|
260
|
|
30
|
|
290
|
|
|
1,100
|
|
(20
|
)
|
1,080
|
|
|
(10
|
)
|
|||||||
- 20%
|
530
|
|
20
|
|
550
|
|
|
2,200
|
|
(180
|
)
|
2,020
|
|
|
(250
|
)
|
(1)
|
Projections based upon the (increase) decrease to unhedged fuel cost as compared to the jet fuel price per gallon of $2.86, excluding transportation costs and taxes, at
September 30, 2013
and estimated fuel consumption of 918 million and 3.9 billion gallons for the three months ending December 31, 2013 and year ending December 31, 2014, respectively.
|
(2)
|
Projections based on average futures prices by contract settlement month compared to futures prices at
September 30, 2013
.
|
Atlanta, Georgia
|
/s/ Ernst & Young LLP
|
October 23, 2013
|
|
Period
|
Total Number of Shares Purchased
|
Average Price Paid Per Share
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
Approximate Dollar Value (in millions) of Shares That May Yet Be Purchased Under the Plan or Programs
|
||||
July 2013
|
7,089
|
|
$
|
19.48
|
|
7,089
|
|
$500
|
August 2013
|
2,351,494
|
|
$
|
19.56
|
|
2,351,494
|
|
$455
|
September 2013
|
2,195,025
|
|
$
|
21.82
|
|
2,195,025
|
|
$407
|
Total
|
4,553,608
|
|
|
4,553,608
|
|
|
15
|
Letter from Ernst & Young LLP regarding unaudited interim financial information
|
31.1
|
Certification by Delta's Chief Executive Officer with respect to Delta's Quarterly Report on Form 10-Q for the quarterly period ended
September 30, 2013
|
31.2
|
Certification by Delta's Executive Vice President and Chief Financial Officer with respect to Delta's Quarterly Report on Form 10-Q for the quarterly period ended
September 30, 2013
|
32
|
Certification pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code by Delta's Chief Executive Officer and Executive Vice President and Chief Financial Officer with respect to Delta's Quarterly Report on Form 10-Q for the quarterly period ended
September 30, 2013
|
101.INS
|
XBRL Instance Document
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB
|
XBRL Taxonomy Extension Labels Linkbase Document
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
Delta Air Lines, Inc.
|
|
(Registrant)
|
|
|
|
/s/ Craig M. Meynard
|
|
Craig M. Meynard
|
|
Vice President and Chief Accounting Officer
|
|
(Principal Accounting Officer)
|
October 23, 2013
|
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
---|
DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
---|
No information found
Customers
Customer name | Ticker |
---|---|
Sabre Corporation | SABR |
Price
Yield
Owner | Position | Direct Shares | Indirect Shares |
---|